In the category of U.S. brand loyalty, Tesla has finally overtaken Ford. Tesla and General Motors rounded up the big wins this year for the 2022 Automotive Loyalty Awards. The category of “Overall Loyalty to Make” award that had been dominated by Ford for the past decade was finally unseated by Tesla.
After a challenging three years for the automotive industry, the retention of customers post-pandemic had been in flux. Tesla’s brand resonated with ethnic consumers which drove loyalty numbers and diversity retention. “Ethnic buyers have increased their market share in the industry every year for the last decade, making them an important audience in building loyalty success for the foreseeable future,” Vince Palomarez (S&P Global Mobility product manager) said. This fact resulted in Tesla also winning the “Ethnic Market Loyalty to Make” award, as ethnic consumers made up 52 percent of loyal volume.
Other notable wins for Tesla came with repeat wins for “Highest Conquest Percentage” and “Alternative Powertrain Loyalty to Make.” It also won “Most Improved Loyalty to Make” and two segment model loyalty awards for the Tesla Model 3 sedan and the Tesla Model Y crossover.
Vince Palomarez commented that the results of this year’s awards show that electric vehicles are starting to gain more of a foothold in the industry in terms of market share.
Here is a list of the winners from the 2022 Automotive Loyalty Awards.
TESLA SIGNS DEAL WITH SOUTH KOREA’S L&F COMPANY
L&F Co., a South Korean battery-materials maker, signed a $2.91 billion supply contract with Tesla Inc. The deal consists of the company providing high-nickel cathode materials to Tesla for two years from Jan. 1, 2024, through Dec. 31, 2025.
NORTHERN MEXICO GREEN LIGHTS TESLA PLANT
After speculation had circulated for months on Tesla going to Mexico, Lopez Obrader, Mexico’s president, announced on Tuesday that a new Tesla assembly plant will be built in the Northern Mexico City of Santa Catarina in the greater Monterrey area. The deal, worth $5 billion, marks Tesla’s substantial push to broaden operations outside the U.S.
There is speculation on if the plant would be a Tesla Gigafactory that could produce the Semi truck, Roadster sports car, and potentially other vehicles like the Model Y sport utility vehicles (SUV).
There are concessions that had to be made in order for the deal to happen. Tesla would not be granted any subsidies to make batteries or semiconductors. The water shortage in Mexico had been a concern, and Elon worked with the Obrader Administration to arrange for recycled water to be used in the assembly process. Overall, the deal “…will represent a considerable investment and many, many jobs,” Lopez Obrador told reporters. This can be counted as a major step forward as overall investment has been stifled by the Obrador Administration, which has strengthened state control on the energy markets at the expense of private capital.